Amphenol’s (APH - Free Report) fourth-quarter 2020 adjusted earnings of $1.13 per share beat the Zacks Consensus Estimate by 10.8%. Moreover, the figure increased 15% year over year.
Net sales increased 13% year over year to $2.426 billion and beat the consensus mark by 12.8%. Organically, net sales increased 11%.
The top line benefited from robust growth in the mobile devices, automotive and industrial end-markets.
Quarterly Details
Interconnect Products and Assemblies’ (96.1% of net sales) sales were up 13.6% from the year-ago quarter to $2.331 billion. Moreover, Cable Products and Solutions sales were $95.5 million, up 1.7% year over year.
Gross margin on a GAAP basis was unchanged on a year-over-year basis to 31.6%.
Selling, general and administrative expenses (SG&A) as a percentage of revenues decreased 60 bps on a year-over-year basis to 11%.
Adjusted operating margin expanded 60 bps on a year-over-year basis to 20.6%.
Segment-wise, Interconnect Products and Assemblies’ operating margin grew 60 bps on a year-over-year basis to 21.6%. Cable Products and Solutions’ operating margin expanded 10 bps to 0.4%.
Balance Sheet
As of Dec 31, 2020, Amphenol had cash and cash equivalents worth $1.70 billion, higher than $1.46 billion as of Sep 30, 2020.
During the quarter, the company repurchased 1.5 million shares of its common stock for $182 million and paid dividends of $75 million.
Amphenol also announced a 2-for-1 stock split, effective Mar 4, 2021.
Acquisitions
Amphenol completed the acquisitions of Positronic and El-Cab in the reported quarter.
On Dec 9, 2020 Amphenol announced that it has inked a definitive agreement to acquire MTS Systems. On Jan 19, 2021 the company announced an agreement to divest the MTS Test & Simulation business to Illinois Tool Works following the close of the MTS acquisition.
Guidance
Amphenol expects first-quarter 2021 earnings between 90 cents and 94 cents per share (45-47 cents per share post-split). Revenues are anticipated between $2.120 and $2.180 billion, representing 14-17% year-over-year growth.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 94 cents, implying 32.4% growth from the figure reported in the year-ago quarter. The consensus mark for revenues stands at $2.09 billion, suggesting 12.2% growth from the year-ago quarter’s reported figure.
Zacks Rank & Stocks to Consider
Currently, Amphenol has a Zacks Rank #2 (Buy).
Littelfuse (LFUS - Free Report) , Kulicke and Soffa (KLIC - Free Report) and Knowles (KN - Free Report) are better-ranked stocks worth considering from the broader computer and technology sector. All the three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Moreover, while Littelfuse is set to report their quarterly results on Feb 3, both Kulicke and Soffa and Knowles are scheduled to report the same on Feb 4.
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Amphenol’s (APH - Free Report) fourth-quarter 2020 adjusted earnings of $1.13 per share beat the Zacks Consensus Estimate by 10.8%. Moreover, the figure increased 15% year over year.
Net sales increased 13% year over year to $2.426 billion and beat the consensus mark by 12.8%. Organically, net sales increased 11%.
The top line benefited from robust growth in the mobile devices, automotive and industrial end-markets.
Quarterly Details
Interconnect Products and Assemblies’ (96.1% of net sales) sales were up 13.6% from the year-ago quarter to $2.331 billion. Moreover, Cable Products and Solutions sales were $95.5 million, up 1.7% year over year.
Gross margin on a GAAP basis was unchanged on a year-over-year basis to 31.6%.
Selling, general and administrative expenses (SG&A) as a percentage of revenues decreased 60 bps on a year-over-year basis to 11%.
Adjusted operating margin expanded 60 bps on a year-over-year basis to 20.6%.
Segment-wise, Interconnect Products and Assemblies’ operating margin grew 60 bps on a year-over-year basis to 21.6%. Cable Products and Solutions’ operating margin expanded 10 bps to 0.4%.
Balance Sheet
As of Dec 31, 2020, Amphenol had cash and cash equivalents worth $1.70 billion, higher than $1.46 billion as of Sep 30, 2020.
During the quarter, the company repurchased 1.5 million shares of its common stock for $182 million and paid dividends of $75 million.
Amphenol also announced a 2-for-1 stock split, effective Mar 4, 2021.
Acquisitions
Amphenol completed the acquisitions of Positronic and El-Cab in the reported quarter.
On Dec 9, 2020 Amphenol announced that it has inked a definitive agreement to acquire MTS Systems. On Jan 19, 2021 the company announced an agreement to divest the MTS Test & Simulation business to Illinois Tool Works following the close of the MTS acquisition.
Guidance
Amphenol expects first-quarter 2021 earnings between 90 cents and 94 cents per share (45-47 cents per share post-split). Revenues are anticipated between $2.120 and $2.180 billion, representing 14-17% year-over-year growth.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 94 cents, implying 32.4% growth from the figure reported in the year-ago quarter. The consensus mark for revenues stands at $2.09 billion, suggesting 12.2% growth from the year-ago quarter’s reported figure.
Zacks Rank & Stocks to Consider
Currently, Amphenol has a Zacks Rank #2 (Buy).
Littelfuse (LFUS - Free Report) , Kulicke and Soffa (KLIC - Free Report) and Knowles (KN - Free Report) are better-ranked stocks worth considering from the broader computer and technology sector. All the three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Moreover, while Littelfuse is set to report their quarterly results on Feb 3, both Kulicke and Soffa and Knowles are scheduled to report the same on Feb 4.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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